On August 26, the CFPB published a report regarding cash-back fees that some retailers charge for consumers to access cash via the consumers’ debit or prepaid cards. According to the CFPB, such fees have become more prevalent due to bank mergers, branch closures and out-of-network ATM fees, which reduced the availability of free cash access points for consumers. The CFPB’s report overviewed consumers’ use of cash back, the benefits and costs of such transactions to merchants, and the practices of market participants that do not charge cash-back fees.

The Bureau concluded that, while cash back at some retailers is free, other retailers charged for this service, and that consumers with lower incomes or fewer banking choices — including those in small, rural towns, communities of color, and low-income communities — were more likely to encounter cash-back fees. The report sampled eight large retail companies and found that three of them charged cash-back fees. The Bureau estimated this practice costs consumers over $90 million a year, asserting that “some retailers provide cash back as a helpful service to their customers, while other retailers may be exploiting these conditions by charging fees to their consumers for accessing their cash.” The CFPB noted that it “will continue to monitor developments related to the fees consumers pay for accessing cash, and work with agencies across the federal government to ensure people have fair and meaningful access to the money that underpins our economy.”